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DECISION OF THE PRIME MINISTER

On plan on the implementation of the political

bureau's directive no. 45/CT-TW of October 22, 2004

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Political Bureau's Directive No. 45-CT/TW of October 22, 2004 on accelerating the restructuring, renewal, development and raising of efficiency of State enterprises in 2004 and 2005,

DECIDES:

Article 1.- To issue together with this Decision the Plan on the implementation of the Political Bureau's Directive No. 45-CT/TW of October 22, 2004 on accelerating the restructuring, renewal, development and raising of efficiency of State enterprises.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People's Committees shall have to implement this Decision./.

PLAN ON THE IMPLEMENTATION OF THE POLITICAL BUREAU'S

DIRECTIVE No. 45-CT/TW OF OCTOBER 22, 2004

(Issued together with the Prime Minister's Decision No. 13/2005/QD-TTg

of January 14, 2005)

On October 22, 2004, the Political Bureau (of the Communist Party of Vietnam Central Committee) issued Directive No. 45-CT/TW on accelerating the restructuring, renewal, development and raising of efficiency of State enterprises in 2004 and 2005. In furtherance of this Directive, the Prime Minister requests the ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees and Managing Boards of State corporations to concentrate efforts on well performing the following tasks in 2005:

1. To continue propagating and educating the contents of resolutions of the IXth Party Central Committee's 3rd plenum and 9th plenum and Directive No. 45-CT/TW of the Political Bureau among State agencies, organizations and individuals so as to raise their awareness about the restructuring, renewal, development and raising of operation efficiency of State enterprise; to enhance the sense of responsibility in directing and organizing the performance of such task; to determine it as one of key tasks so as to contribute to the successful implementation of the 2001-2005 five-year socio-economic plan.

2. The ministries, ministerial-level agencies, Government-attached agencies, provincial/municipal People's Committees and Managing Boards of State Corporations:

a/ To direct the speeding up and completion of the restructuring and renewal of State enterprises according to schemes already approved by the Prime Minister; at the same time, in the first quarter of 2005, to complete the review and classification so as to make supplements to the list of enterprises subject to equitization, assignment, sale, business contract or lease in the spirit of the Resolution of the IXth Party Central Committee's 9th plenum and the Prime Minister's Decision No. 155/2004/QD-TTg of August 24, 2004 for submission to the Prime Minister for approval.

Of the review contents for annual evaluation of State officials, Party members and units, it is necessary to take into consideration the results of directing and implementing the work of State enterprise restructuring and renewal.

b/ To resolutely reorganize, right in 2005, enterprises which suffer from prolonged loss and cannot overcome that situation, in forms of equitization, sale, business contract, lease, dissolution or bankruptcy. Enterprises, which have suffered from losses and no longer have State capital, shall be auctioned or sold directly to laborers therein.

c/ State companies and independent cost-accounting member companies of State corporations, which are qualified to maintain 100% State capital according to the provisions of the Prime Minister's Decision No. 155/2004/QD-TTg and plans already approved and adjusted by the Prime Minister must shift to operate as State-run one-member limited liability companies.

d/ To strictly and fully abide by the provisions of the Government's Decree No. 187/2004/ND-CP of November 16, 2004 on transforming State companies into joint-stock companies. To direct the settlement of existing financial and labor problems before carrying out the equitization; not to carry out self-contained equitization within enterprises; to effect the sale of shares of equitized State enterprises, first of all, corporations and large-sized companies which are operating efficiently, on securities market so as to attract investment capital and investors of high potentials in technology, market, managerial experiences, etc. On the basis of the classification criteria and list of to-be-classified State companies and independent cost-accounting member companies of State corporations as well as plans on production and business development investment of to-be-equitized enterprises, to decide on the levels of companies' charter capital and capital held by the State. Regarding the equitization of State corporations, first of all, the State shall hold dominant shares.

e/ The ministries, localities and State corporations which have State-run agricultural and/or forestry farms shall finalize and send schemes on restructuring, renewal and development of such agricultural and/or forestry farms to the Ministry of Agriculture and Rural Development for appraisal in the first quarter of 2005.

The Ministry of Agriculture and Rural Development shall appraise and submit schemes on restructuring, renewal and development of State-run agricultural and/or forestry farms of ministries, localities and corporations to the Prime Minister for approval before June 2005.

f/ To complete and adopt amendments and supplements to the charters on organization and operation of State corporations in accordance with the Law on State Enterprises in the second quarter of 2005. To approve the development strategies of enterprises under their respective management.

3. The Ministry of Finance shall, in the second quarter of 2005, finalize a report on evaluation of financial situation and production and/or business efficiency of State corporations, which shall serve as basis for continued restructuring of State corporations in combination with branch development strategies.

4. Based on the classification criteria and list of State corporations, the ministries, localities and State corporations shall, in the first quarter of 2005, submit to the Prime Minister the lists of State corporations to be equitized in 2005 and 2006.

5. The State Bank shall, in the second quarter of 2005, submit to the Prime Minister the scheme on equitization of the Mekong River Delta Housing Development Bank.

6. The Steering Committee for Enterprise Renewal and Development shall organize monthly briefings with 5 ministries and 3 localities, where exist many State companies, namely Hanoi, Ho Chi Minh and Hai Phong cities and the Ministries of Industry; Agriculture and Rural Development; Transport; Construction; and Trade so as to urge, promptly grasp the situation and work out solutions to remove obstacles on mechanisms and policies as well as difficulties in organizing the restructuring and transformation of ownership of State companies.

7. The ministries, ministerial-level agencies and Government-attached agencies shall submit to the Prime Minister for promulgation or promulgate according to their competence legal documents with contents consistent with current law provisions so as to serve the restructuring, renewal, development and raising of efficiency of State enterprises and at the same time to ensure the State's management and supervision in the capacity of State owners over State companies and State capital portions invested in enterprises. Concretely:

a/ The Ministry of Finance:

- In the first quarter of 2005, to propose to the Prime Minister for decision the establishment of a State Capital Investment and Trading Corporation to exercise the rights and perform the obligations of the State owner as well as the functions of State capital investment and trading as prescribed in Article 60 of the Law on State Enterprises.

- To study and improve procedures and process for handling outstanding debts, ensuring the strict compliance with current regulations and at the same time, creating conditions to speed up the process of restructuring and reorganizing State enterprises.

b/ The Ministry of Labor, War Invalids and Social Affairs:

- In the second quarter of 2005, to submit to the Prime Minister the Regulation on the salary and bonus regime for general directors, directors, deputy-directors and chief accountants working on a contractual basis; to guide the implementation of the responsibility allowance and bonus regime for representatives of the State capital portions at other enterprises.

- To study the formulation of an enterprise executive-market and programs on training enterprise executives and skilled workers so as to meet the requirements of socio-economic development and international economic integration.

c/ The Ministry of Home Affairs shall, in the second quarter of 2005, submit to the Prime Minister criteria for evaluation of enterprise executives, which shall serve as a basis for recruitment and signing of contracts with, and distribution of incomes to, enterprise executives.

d/ The Ministry of Planning and Investment shall, in the second quarter of 2005, submit to the Government for promulgation a decree amending and supplementing a number of articles of the Decree No. 63/2001/ND-CP on transforming State enterprises and enterprises of political organizations or socio-organizations into one-member limited liability companies.

8. To speed up the experimentation of new managerial and organizational models.

a/ The Ministries of Industry; Construction; and Transport shall have to:

- Direct the elaboration of schemes on formulation of consortia operating in the domains of petroleum, electricity and construction for submission to the Prime Minister for approval in the fourth quarter of 2005.

- Direct the formulation of schemes on the experimental application of the model whereby the Managing Boards sign contracts with general directors or directors in five corporations, namely Vietnam Shipbuilding Corporation, Vietnam Automobile Corporation, the Electric Technical Equipment Corporation, the Construction Ceramic and Glass Corporation, and the Red River Construction Corporation for submission to the Prime Minister in the first quarter of 2005.

b/ The ministries and ministerial-level agencies shall take initiative in studying and proposing to the Prime Minister the formulation of economic consortia operating in domains other than those defined at Point a of this Section in 2006.

9. To organize the preliminary review of new managerial and organizational models:

a/ In the second quarter of 2005, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Steering Committee for Enterprise Renewal and Development in, organizing the preliminary review of the parent company-affiliate company model and draw experiences thereon so as to finalize regulations (if necessary) and expand this model.

b/ The Steering Committee for Enterprise Renewal and Development shall, in the fourth quarter of 2005, organize the preliminary review of the model whereby Managing Boards sign contracts with general directors or directors.

10. To consolidate the system of the Enterprise Renewal Boards of various levels: the Enterprise Renewal Boards of ministries shall be headed by the ministers or vice ministers; boards of provinces and centrally-run cities, by the presidents or vice presidents of the People's Committees; boards of State corporations, by the chairmen of the Managing Boards or the general directors. The boards shall have assisting sections with full-time officials so as to advise on, inspect and urge the work of restructuring and renewal of Sate enterprises, detect and resolve problems according to their competence or submit to competent persons for decision.

The ministries, the ministerial-level agencies, the Government-attached agencies and the provincial/municipal People's Committees, which are assigned to formulate schemes, shall have to coordinate with concerned agencies in studying and formulating schemes for submission to the Prime Minister according to set tempo./.